Directions of adaptation of the NBU money and credit adjustment to the inflation targeting mode on the example of New Zealand

Abstract

Introduction. The article deals with the main problems of adaptation of the NBU monetary and credit regulation to the inflation-targeting mode. The main reasons for the low efficiency of the introduction of world experience in the field of monetary policy to domestic realities are considered. The methodical recommendations for increasing the efficiency of monetary regulation, optimizing the monetary mode of inflation targeting and implementing the monetary rule in the practice of realization of monetary policy of the NBU are developed.

Purpose. The article aims to study the world experience in the field of adapting monetary and credit regulation to the monetary mode of inflation targeting on the example of New Zealand and to develop the theoretical and practical conclusions for Ukraine.

Method (methodology). The following general scientific methods have been used in this research: method of  synthesis and generalization (to substantiate the basic problems of monetary regulation in the context of realization of the monetary regime of inflation targeting in Ukraine); methods of analysis and comparison (to study the experience of New Zealand in the field of the formation of the monetary mode of inflationary regulation); statistical and mathematical methods (to develop monetary rule in Ukraine).

Results. The main problems of low efficiency of monetary regulation in Ukraine that are related to the neglect of national interests, imbalances in the development of the national economy, inappropriate structure of exports and imports, negative business environment, and conditions for the absorption of monetary impulses have been identified. The experience of New Zealand in the field of the formation of the monetary mode of inflation targeting has been researched. It has been made the conclusion concerning a long transitional period during which, at the level of inflationary purposes, de facto, as intermediate monetary policy objectives, the exchange rate and liquidity of the banking system are used. The monetary rule for Ukraine has been developed. The methodical recommendations for increasing the effectiveness of the monetary and credit regulation of the NBU within the framework of flexible inflation targeting have been worked out.